Brooklyn Home Prices Break Records as Inventory Levels Increase

As real estate shows signs of cooling nationally, the Brooklyn housing market remains robust, with home prices reaching new highs and inventory also climbing in the third quarter.

Average and median prices for homes across the borough rose to their highest levels on record in the third quarter of 2025, with the median sales price now crossing the million-dollar mark, according to a market report from appraisal firm Miller Samuel for Douglas Elliman.

The average sale price of all types of homes climbed 11.6 percent year over year to $1,388,463, while the median hit $1.05 million, up 7.7 percent from the same time last year. It is the third consecutive quarter the prices have hit new heights in the borough.

Sales activity and inventory also increased, showing movement in the market, especially among luxury listings where inventory was up 84.4 percent on the prior year and sales were up 36.1 percent.

The number of listings for all types of homes in the borough rose 16.3 percent year over year in the third quarter to 3,417 homes and sales volume ticked up 7.1 percent from a year earlier to 2,705 transactions.

The Brooklyn story continues to be one about record prices, Jonathan Miller of Miller Samuel told Brownstoner. “The last three quarters the median and average sale prices were the highest in history and actually, in the third quarter, the median price at $1.05 million is the first time overall pricing has cracked the million dollar threshold,” he said.

While there was an increase in sales and inventory, Miller added, Brooklyn has been “challenged by chronically low inventory levels, [and] even though inventories [are] rising, it’s still on the low side and that continues to be a challenge.” That was evidenced by the fact that 22 percent of sales in the borough went for over asking price, he said.

Condos led the gains in the third quarter, with median prices jumping 14.8 percent year over year to $1,147,766. The gains were particularly pronounced for new development condos, which were up 28.8 percent year on year to $1,365,500. While the median rose for condos, the price per square foot actually came down 5.9 percent vs. the same time last year to $1,075.

One- to three-family houses also surged in price in the third quarter, with median prices going up 7.5 percent year over year to $1,265,297. The average price per square foot for those homes also rose 12.3 percent to $893.

Co-ops, meanwhile, saw modest growth, with median prices ticking up 1.1 percent to $555,000 and the number of sales going up 1.8 percent to 573 units.

Northwest Brooklyn saw some of the biggest increases in price in the borough. That was particularly pronounced for one- and two-family townhouses, whose median price rose 21.6 percent to $3.75 million and 18.2 percent to $3.25 million, respectively. The average price per square foot for one- to three-family brownstones also jumped 16.1 percent to $2,231.

Looking forward, Miller said upcoming rate cuts by the Fed could lead to lower mortgage rates and likely more sales. However, lower mortgage rates could also lead to higher prices because “it burns off inventory faster than it can be created and that drives prices higher.”

More long term, he said, the government’s tariffs are creating uncertainty in the economy, as well as the chance of recession. That, he said, could lead to lower rates, but also to job loss and a weaker economy, which could depress sales and prices.

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